Cost Benefit Analysis

Cost benefit analysis (CBA) is a method for organising information to aid decision makers in the allocation of scarce capital. The technique provides a quantitative comparison of alternative options.

Investments in infrastructure (water, roads, ports) research and development (rural industries, cooperative research centres) and natural resource management (weed control, natural resource utilisation) are examples of the types of investments EconSearch has analysed for public and private sector clients. These types of investments are critical to economic development, particularly in regional and rural locations.

There are two main perspectives from which this analysis and evaluation may be undertaken:

An economic perspective, in which the focus is on the overall impact on the material well-being of the society as a whole

A financial perspective, in which the focus is on the monetary return to the proponent of the project

Although there is considerable common ground in the techniques that are applied in undertaking these two forms of analysis, they are distinctly different.

It is also important to distinguish between economic evaluation and economic impact analysis.

Economic evaluation is normative: it is designed to assess whether or not a project will, on balance, improve economic welfare.

Economic impact analysis is descriptive: it is intended to describe the effect that a project will have on certain measures of economic activity, but provides no direct guidance on whether or not a project is worthwhile.

Latest News

IELab Conference 2017

26 November 2017: EconSearch economists Nick Angelakis and Anders Magnusson recently participated in the IELab Conference 2017 in Queensland. The conference showcased the diverse applications of IELab (Industrial Ecology Virtual Laboratory) and provided opportunities for new collaborations and methodology developments. EconSearch has supported the development of IE Lab since its inception. Continued participation in the community allows EconSearch to contribute to the improvement of regional economic analysis in Australia and allows timely access to the bespoke regional economic models.

Circular Economy Conference and Academic Symposium

17 November 2017: EconSearch economist Heather Bailey recently gave a presentation to the Powering the Change to a Circular Economy conference and academic symposium. On November 15-17 in Adelaide, South Australia, business, government and academia came together to collaborate and discuss how the circular economy can be, and is being, implemented. Heather presented a paper about the study EconSearch undertook, in collaboration with LifeCycles, Colby Industries and the University of Queensland, for the South Australian Government on the potential benefits of a circular economy in South Australia.

Northern Adelaide Irrigation Scheme

17 August 2017: Funding has been secured through the National Water Infrastructure Development Fund (NWIDF) for the Northern Adelaide Irrigation Scheme (NAIS), which adds to $110 million committed by the State Government earlier this year. SA Water and PIRSA have partnered to develop the project. To deliver the additional recycled water (20GL), upgrades are required to the Bolivar Wastewater Treatment Plant, as well as a new pipe network north of the Gawler River. EconSearch assisted this successful bid by providing a cost benefit analysis and an estimation of the economic impact of the proposed development. Click here for the media release.